Research
Research Studies–Proposal Requests
Request For Proposal–Longevity Product Risks
- Background
With the increasing aging population, increasing life expectancy and mortality improvement from medical advancement,
lifestyle changes and other reasons, there has been increasing interest from industry in identifying and managing longevity risk.
- Purpose
The purpose of this project is to educate actuaries and other interested parties on the various
longevity risks per life insurance product lines and the techniques, methods, and processes reinsurers and direct writers
use to identify, quantify, and manage these risks.
- Research Objective
The overall objective for this project is to perform a literature review on the topic of longevity product risks.
The researcher will summarize his/her findings in a report that should meet the following requirements:
- Survey existing studies, industry surveys, articles and research papers on longevity product risks. This should not be limited
to the US and Canada but also include other international markets that are also dealing with the aging problems such as Continental
Europe and/or are further along than the US such as the UK.
- Identify new product concepts under consideration as may be discussed in papers, presentations and publications. This should not
be limited to the life and reinsurance industries but also include distributors, capital markets firms and academics.
- Identify the various risk mitigation methodologies available and explore several of the more promising methods that may come into
play in addressing longevity risks. This should not be limited to the life and reinsurance industries but also include distributors,
capital markets firms and academics.
- Describe and discuss factors that might affect the future trajectory of longevity design and/or sales such as regulatory,
demographic and psychographic. What can be learnt from the UK and Canada should be considered in this regard.
- Based on the findings of the literature review, identify areas where further industry surveying or research is needed if any.
Identify specific needs facing the industry and recommend specific ways of addressing those needs through research.
The researcher will be expected to provide periodic progress reports to a Project Oversight Group. Members of this group will
be available to provide feedback and guidance to the researcher as needed.
A relatively short term project is envisioned as findings are expected to be presented at the SOA's Annual Meeting in mid–October.
- Proposal
To facilitate the evaluation of proposals, the following information should be submitted:
- Resumes of the researcher(s), including any graduate student(s) expected to participate, indicating how their background,
education, and experience bear on their qualifications to undertake the research. If more than one researcher is involved, a single
individual should be designated as the lead researcher and primary contact. The person submitting the proposal must be authorized to
speak on behalf of all the researchers as well as for the firm or institution on whose behalf the proposal is submitted.
- An outline of the approach to be used, emphasizing issues that require special consideration. Details should be given
regarding the manner in which appropriate published material will be identified, search techniques to be used, collateral material to
be consulted, and possible limitations of the review and analysis.
- Cost estimates for the research, including computer time, salaries, report preparation, research costs, etc. Such estimates
can be in the form of hourly rates, but in such cases, time estimates should also be included.
- Any guarantees as to total cost should be given and will be considered in the evaluation of the proposal. While cost will be
a factor in the evaluation of the proposal, it will not necessarily be the decisive factor.
- A schedule for completion of the research, identifying key dates or time frames for research completion and report submission.
A relatively short term project is envisioned.
- Ideas regarding the form and distribution of the final report, both for immediate release and for permanent reference (e.g.,
submission to North American Actuarial Journal or other refereed publication, SOA Monograph Series, CD ROM).
- Other related factors that give evidence of a proposer's capabilities to perform in a superior fashion should be detailed.
- Selection Process
The SOA's Reinsurance Section Council (RSC) is responsible for the selection of the proposal to be funded.
Input from other knowledgeable individuals also may be sought, but the RSC will make the final decision. The SOA's Research Actuary
will provide staff actuarial support. A Project Oversight Group (POG) will be appointed by the RSC to oversee the project upon selection of the proposal.
- Questions
Any questions regarding this RFP should be directed by fax or e–mail to:
- Submission of Proposal
Please e–mail a copy of the proposal to: Jan Schuh at jschuh@soa.org.
Proposals must be received no later than May 30, 2008. It is anticipated that all researchers who have submitted
proposals will be informed of the status of their proposal no later than June 30, 2008.
Note: Proposals are considered confidential and proprietary.
- Conditions
The Society of Actuaries reserves the right to not award a contract for this research.
Reasons for not awarding a contract could include, but are not limited to, a lack of acceptable proposals or a finding
that insufficient funds are available to proceed. The Society of Actuaries also reserves the right to redirect the
project as is deemed advisable.
The Society of Actuaries intends to copyright and publish the results of this research.
The research will be considered work–for–hire and all rights thereto belong to the Society of Actuaries. However,
appropriate credit will be given to the researcher(s).